PPolySim OS
Finance & Quant Pack · Multi-Solver

Pairs Trading

Cointegration & signal. This multi-solver chains 2 solvers into a single guided workflow — run each step in order and carry the result forward.

Workflow steps
  1. linear-regression
  2. monte-carlo
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1

Linear Regression

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Linear RegressionLive

Controls

Presets

Ordinary least squares finds the line that minimizes the sum of squared vertical residuals (the gray drop-lines). R² measures the fraction of variance the line explains — 1 is perfect, 0 is useless. Add noise or remove points to watch the fit and R² degrade.

▶ Run in Python

Data Inspector

Fitted slope0.000
Intercept0.000
0.000
Correlation r0.000

Governing equation

Reading this result: R² = 0.00: noise (2) swamps the signal, so least squares can barely tell the slope from flat — adding data points would tighten the estimate.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

Monte Carlo Price SimulationLive

Controls

Presets

Geometric Brownian motion models a price with constant drift and random volatility — the assumption behind Black-Scholes. Running hundreds of simulated paths reveals the full distribution of outcomes, not just an average. Educational tool, not investment advice.

▶ Run in Python

Data Inspector

Median outcome$0
5th percentile$0
95th percentile$0

Governing equation

Reading this result: Median outcome is about $0, just under the drift-only $107 — GBM compounds in log-space, so volatility always pulls the typical path below the average.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

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Frequently asked questions

What is the Pairs Trading multi-solver?
Pairs Trading is a guided workflow that chains 2 individual PolySim solvers into one end-to-end analysis, piping each result into the next step.
Is it free to use?
Yes. Every step runs entirely in your browser using real numerics — no install, no account, no cloud cost. Custom or private solver packs are available as a paid service.